Amelia is partnering with Frank, an engineer, to try and sell a new aerospace product. Amelia has the sales expertise, but the firm believes that the product is so high-tech that an engineer who helped design the product is needed to explain more of the technical details for clients who have questions. Amelia is very eager to make sales. Normally, Amelia likes to work alone, but she appreciates Frank's expertise because she thinks it'll help increase sales significantly. Amelia is paid by the sale, so her compensation depends entirely upon her sales during a given period. In addition to answering specific questions about the product, Frank will also provide the client organization with assistance on its applications and system design. Refer to Scenario 17.3. What type of compensation system does Amelia have for her personal selling efforts

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crow design, inc. is a web site design and consulting firm. the firm uses a job order costing system in which each client is a different job. crow design assigns direct labor, licensing costs, and travel costs directly to each job. it allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. direct labor hours (professional) 6,250 hours direct labor costs ($1,800,000 support staff salaries ,000 computer ,000 office ,000 office ,000 in november 2012, crow design served several clients. records for two clients appear here: delicious treats mesilla chocolates direct labor 700 hours 100 hours software licensing $ 4,000 $400 travel costs 8,000 1. compute crow design’s direct labor rate and its predetermined indirect cost allocation rate for 2012. 2. compute the total cost of each job. 3. if simone wants to earn profits equal to 50% of service revenue, how much (what fee) should she charge each of these two clients? 4. why does crow design assign costs to jobs?

Search engines generate revenue through pay-per-click (each time a user clicks a link to a retailer’s website); pay-per-call (each time a user clicks a link that takes the user to an online agent waiting for a call); or pay-per-conversion (each time a website visitor is converted to a customer)